More employers are covering GLP-1 drugs for treatment of obesity

Most employers covering obesity medications impose authorization requirements

While nearly all health plans cover GLP-1 drugs for diabetes, that is not the case for obesity treatment. However, despite some headlines about some organizations dropping coverage for these obesity medications due to the cost, the prevalence of coverage rose overall in 2024. Of all large employers (those with 500 or more employees), 44% offer coverage, up from 41% last year. Of those with 20,000 or more employees, nearly two-thirds now offer coverage, up sharply from 56% in 2023. This trend may reflect the hope that GLP-1 medications will turn the tide on the obesity epidemic and positively impact downstream medical costs. Cost is clearly a concern, and nearly all employers that cover obesity medications now have authorization requirements in place to ensure they are used by members who will benefit the most.